Analysis of the Formal/Informal Wage Inequalities in Colombia: A Semiparametric Approach

Informality is a common problem in Colombia, with almost 50 percent of the workers employed in this sector. This may be a solution for unemployment, but it is a lose/lose game unless the individuals have a comparative advantage in the informal sector. This article uses information from the Colombian...

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Institution:Universidad EIA
Main Authors: Ramoni-Perazzi, Josefa, Orlandoni-Merli, Giampaolo, Cibas
Format: Artículo de revista
Language:English
Published: Journal of Applied Social Science 2021-03-01
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Online Access:https://repositorio.udes.edu.co/handle/001/6162
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recordtype dspace
spelling Ramoni-Perazzi, Josefa
Orlandoni-Merli, Giampaolo
Cibas
2022-02-25T14:33:11Z
2022-02-25T14:33:11Z
2021-03-01
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Informality is a common problem in Colombia, with almost 50 percent of the workers employed in this sector. This may be a solution for unemployment, but it is a lose/lose game unless the individuals have a comparative advantage in the informal sector. This article uses information from the Colombian Great Integrated Household Survey (GIHS) to analyze the wage gap between formal and informal urban sectors in two different periods, 2008:4 and 2017:4, using a semiparametric approach. Kernel density functions by groups are estimated; counterfactuals are generated by weighting wages of informal sector workers by their probability of working in the formal sector, to estimate how much an informal sector worker could make if treated as formal, according to his characteristics. The results indicate that only some groups (self-employed and some entrepreneurs) are better off if formalized.
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25 p
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https://doi.org/10.1177/1936724420975343
https://repositorio.udes.edu.co/handle/001/6162
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Journal of Applied Social Science
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Journal of Applied Social Science
Copyright © 2021The Authors Association for Applied and Clinical Sociology
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https://journals.sagepub.com/doi/abs/10.1177/1936724420975343?journalCode=jaxc
Colombian labor market
Informal sector
Kernel density function
Wage gap
Inequalities
Analysis of the Formal/Informal Wage Inequalities in Colombia: A Semiparametric Approach
Artículo de revista
http://purl.org/coar/resource_type/c_6501
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http://purl.org/coar/version/c_970fb48d4fbd8a85
institution Universidad EIA
collection d_repositorio.udes.edu.co-DSPACE
title Analysis of the Formal/Informal Wage Inequalities in Colombia: A Semiparametric Approach
spellingShingle Analysis of the Formal/Informal Wage Inequalities in Colombia: A Semiparametric Approach
Ramoni-Perazzi, Josefa
Orlandoni-Merli, Giampaolo
Ramoni-Perazzi, Josefa
Orlandoni-Merli, Giampaolo
Cibas
Colombian labor market
Informal sector
Kernel density function
Wage gap
Inequalities
title_short Analysis of the Formal/Informal Wage Inequalities in Colombia: A Semiparametric Approach
title_full Analysis of the Formal/Informal Wage Inequalities in Colombia: A Semiparametric Approach
title_fullStr Analysis of the Formal/Informal Wage Inequalities in Colombia: A Semiparametric Approach
title_full_unstemmed Analysis of the Formal/Informal Wage Inequalities in Colombia: A Semiparametric Approach
title_sort analysis of the formal/informal wage inequalities in colombia: a semiparametric approach
author Ramoni-Perazzi, Josefa
Orlandoni-Merli, Giampaolo
Ramoni-Perazzi, Josefa
Orlandoni-Merli, Giampaolo
Cibas
author_facet Ramoni-Perazzi, Josefa
Orlandoni-Merli, Giampaolo
Ramoni-Perazzi, Josefa
Orlandoni-Merli, Giampaolo
Cibas
building Repositorio digital
topic Colombian labor market
Informal sector
Kernel density function
Wage gap
Inequalities
topic_facet Colombian labor market
Informal sector
Kernel density function
Wage gap
Inequalities
publishDate 2021-03-01
language English
publisher Journal of Applied Social Science
physical 25 p
format Artículo de revista
description Informality is a common problem in Colombia, with almost 50 percent of the workers employed in this sector. This may be a solution for unemployment, but it is a lose/lose game unless the individuals have a comparative advantage in the informal sector. This article uses information from the Colombian Great Integrated Household Survey (GIHS) to analyze the wage gap between formal and informal urban sectors in two different periods, 2008:4 and 2017:4, using a semiparametric approach. Kernel density functions by groups are estimated; counterfactuals are generated by weighting wages of informal sector workers by their probability of working in the formal sector, to estimate how much an informal sector worker could make if treated as formal, according to his characteristics. The results indicate that only some groups (self-employed and some entrepreneurs) are better off if formalized.
url https://repositorio.udes.edu.co/handle/001/6162
url_str_mv https://repositorio.udes.edu.co/handle/001/6162
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score 11.257267